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Supporting Technology with Regulation

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Sridhar S Sundaram, Vice President, Head of Global Product Line – Grinding and Gears, FLSmidth explains the role of technology in enhancing cement manufacturing processes to enable bigger and faster strides towards net zero targets.

Productivity growth through automation in the cement industry has grown from use of technology in the old physiological days to Artificial Intelligence (AI) powered softwares today. Cement plants operate in an automated way but there are still manual interventions that happen in an operating plant. These variations are also controlled now with AI powered softwares. This is helping customers have minimum manual intervention in the operation of the cement plants and increase production up to 5 per cent. However, when productivity increases, the energy consumption also decreases since the systems are automated to use only the optimum amount of energy. FLSmidth has an optimisation software called Process Expert Controller (PXC), which does the trick for cement manufactures and helps them enhance their production and productivity levels.
Data is meant to enable better decision making. There is a control system, optimisation software and apart from these systems, there is also an application called Site Connect. Data from the control system is available at the head office in a monitor, tablet and mobile phone that enables better decision making and managerial interventions, which in due course of time better production and profits. This kind of digitalisation is at a nascent stage. The aim is to get as many plants connected as possible. Data from this software goes to the cloud, then back to the stakeholders i.e., FLSmidth headquarters, customer headquarters, and to all those who need the data to make better decisions.
Work is also in progress on the backend algorithms for data collection. Based on these algorithms, there can be alarms, flags etc., enabling predictive interventions of plant maintenance.

No Alternative to Safety
There are quite a few experts who have spoken about how to reduce CO2. OxyRich fuel and Green Hydrogen are the next generation topics as we exhaust the existing alternative fuel options. When we go from the present 15 per cent use of alternative fuels to 50 to 60 per cent use of alternative fuels, that itself will take care of the sustainability aspect of the cement industry. Beyond this, when CO2 capture is thought of then OxyRich and Green Hydrogen come into play. This technology is evolving and will eventually benefit all industries that have a high emission rate.
The industry must use alternative fuels. Agriculture wastes can contribute up to 10 per cent of alternative fuels. Now, the industry is targeting 30 to 50 per cent use of alternative fuels, which comes out as waste derived fuels. Feedback that has come from the cement plants states that the odour and other problems associated with these fuels could be hazardous to the health. While it is encouraged for cement plants to use alternative fuels, the challenge is to safeguard every employee at the plant and surroundings with the other harmful effects of the waste derived fuels. The approach towards the use of waste derived fuels should be in a manner that all aspects of its use and safety should be taken care of before its implementation.

Technology at its best
The industry has an intention to reduce its carbon footprint and make cement production friendly for the environment. However, without governance and regulation, the implementation will be a challenge and there will be no standard practice. If you go back 30 years when stacks in cement plants had a lot of dust, it was the government that made the norms and kept making them stricter, which has led to a highly reduced dust emission from cement plants. Similarly, usage of technology for reduction of carbon footprint will require intervention and regulation for cement players.
In Europe, there is a penalty known as carbon tax while the talk of Indian industry is Sustainability Incentive. Either way, there needs to be an intervention to bring down emission levels in any industry.

Future Collaborations
FLSmidth is always with its customers. And the company has a mission zero roadmap, too. The strategy and aim are to design a plant with zero emission by 2030. There are steps involved to this.
The first step is to modernise old plants, which will have a huge impact on reducing carbon emission and energy consumption. Second step would be to collaborate with new technologies and make them available in the market in an accelerated manner. For this, a deal has been signed with Dalmia Cement that both companies will collaborate in pushing the sustainability agenda at a much larger scale than before. With Dalmia Cement as a partner, FLSmidth can immediately test its new technologies. Once that is successful, it can be taken to the market faster than before.
The company is looking at partnerships with leading players to help bring better technology to the industry. Their role, too, is key in bringing a change and FLSmidth is looking forward to collaborating with all players of the Indian cement industry.

ABOUT THE AUTHOR:


Sridhar S Sundaram, VP & Head of Global Product Lines – Grinding and Gears, holds managerial expertise with varied and international experience in Technical, Sales and O&M functions.

Concrete

Construction Costs Rise 11% in 2024, Driven by Labour Expenses

Cement Prices Decline 15%, But Labour Costs Surge by 25%

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The cost of construction in India increased by 11% over the past year, primarily driven by a 25% rise in labour expenses, according to Colliers India. While prices of key materials like cement dropped by 15% and steel saw a marginal 1% decrease, the surge in labour costs stretched construction budgets across sectors.

“Labour, which constitutes over a quarter of construction costs, has seen significant inflation due to the demand for skilled workers and associated training and compliance costs,” said Badal Yagnik, CEO of Colliers India.

The residential segment experienced the sharpest cost escalation due to a growing focus on quality construction and demand for gated communities. Meanwhile, commercial and industrial real estate remained resilient, with 37 million square feet of office space and 22 million square feet of warehousing space completed in the first nine months of 2024.

“Despite rising costs, investments in automation and training are helping developers address manpower challenges and streamline project timelines,” said Vimal Nadar, senior director at Colliers India.

With labour costs continuing to influence overall construction expenses, developers are exploring strategies to optimize operations and mitigate rising costs.

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Concrete

Swiss Steel to Cut 800 Jobs

Job cuts due to weak demand

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Swiss Steel has announced plans to cut 800 jobs as part of a restructuring effort, triggered by weak demand in the global steel market. The company, a major player in the European steel industry, cited an ongoing slowdown in demand as the primary reason behind the workforce reduction. These job cuts are expected to impact various departments across its operations, including production and administrative functions.

The steel industry has been facing significant challenges due to reduced demand from key sectors such as construction and automotive manufacturing. Additionally, the broader economic slowdown in Europe, coupled with rising energy costs, has further strained the profitability of steel producers like Swiss Steel. In response to these conditions, the company has decided to streamline its operations to ensure long-term sustainability.

Swiss Steel’s decision to cut jobs is part of a broader trend in the steel industry, where companies are adjusting to volatile market conditions. The move is aimed at reducing operational costs and improving efficiency, but it highlights the continuing pressures faced by the manufacturing sector amid uncertain global economic conditions.

The layoffs are expected to occur across Swiss Steel’s production facilities and corporate offices, as the company focuses on consolidating its workforce. Despite these cuts, Swiss Steel plans to continue its efforts to innovate and adapt to market demands, with an emphasis on high-value, specialty steel products.

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Concrete

UltraTech Cement to raise Rs 3,000 crore via NCDs to boost financial flexibility

UltraTech reported a 36% year-on-year (YoY) decline in net profit, dropping to Rs 825 crore

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UltraTech Cement, the Aditya Birla Group’s flagship company, has announced plans to raise up to Rs 3,000 crore through the private placement of non-convertible debentures (NCDs) in one or more tranches. The move aims to strengthen the company’s financial position amid increasing competition in the cement sector.

UltraTech’s finance committee has approved the issuance of rupee-denominated, unsecured, redeemable, and listed NCDs. The company has experienced strong stock performance, with its share price rising 22% over the past year, boosting its market capitalization to approximately Rs 3.1 lakh crore.

For Q2 FY2025, UltraTech reported a 36% year-on-year (YoY) decline in net profit, dropping to Rs 825 crore, below analyst expectations. Revenue for the quarter also fell 2% YoY to Rs 15,635 crore, and EBITDA margins contracted by 300 basis points. Despite this, the company saw a 3% increase in domestic sales volume, supported by lower energy costs.

In a strategic move, UltraTech invested Rs 3,954 crore for a 32.7% equity stake in India Cements, further solidifying its position in South India. UltraTech holds an 11% market share in the region, while competitor Adani holds 6%. UltraTech also secured $500 million through a sustainability-linked loan, underscoring its focus on sustainable growth driven by infrastructure and housing demand.

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